Raja Petra Kamarudin
On 15 June 2006, Reezal Merican Naina Merican wrote a letter to Datuk
Zamani Abdul Ghani, the Deputy Governor of Bank Negara Malaysia. The
letter is about an amount of USD50 billion required by Malaysia to
fund its national development. In case you may have forgotten,
Malaysia recently launched its Ninth Malaysia Plan or Rancangan
Malaysia Kesembilan (RMK9). The RMK9, which runs from 2006 to 2010,
is going to cost the nation RM200 billion. What many do not know,
however, is that Malaysia does not actually have the money to finance
the RM200 billion RMK9.
Now, who is Reezal Merican and what authority does he have in
instructing the Deputy Governor of Bank Negara? Reezal Merican is one
of the 'Tingkat Empat' boys and the Political Secretary to the
Finance Minister, who by chance also happens to be Malaysia's Prime
Minister. Reezal Merican is not there because of his abilities but
because Khairy Jamaluddin, the Prime Minister's son-in-law, wants to
keep an eye on things and Reezal Merican plays the role of Khairy's
eyes and ears.
Reezal Merican's job is not only to report everything to Khairy and
to be the minder for the Finance Minister II and keep him under
control, but also to ensure that Khairy gets to read all reports and
letters before it falls onto the desk of the Finance Minister II. By
the time any documents reach the table of the Finance Minister II, it
would already have instructions etched on them about which project
and which contract is to be awarded to which company. In short, the
jobs are apportioned out even before the Finance Minister II gets to
see the papers.
Just to digress a bit, prior to Abdullah Ahmad Badawi tabling the
RMK9 in Parliament for debate and approval, a copy had earlier been
sent to the Finance Minister II. On this particular early-bird copy,
against every project listed in the RMK9, Khairy had etched in his
own handwriting which company was going to be awarded which project.
Abdullah Badawi tabled the RMK9 for Parliament's approval only as a
formality. Some projects such as in East Malaysia had in fact already
started work. The contractors were already working even before
Parliament had approved the projects.
It was reported that the Finance Minister II was flabbergasted.
Nevertheless, with people like Reezal Merican hovering over him,
there was nothing he could do to resist. Doing so would mean he would
have to retire once his term expires. So now you know why he managed
to get an extension of service. It is because he was smart enough not
to resist Khairy but instead complied with whatever Khairy wants.
This is the secret on how you get to keep your job.
And that is why everyone aspires to walk through the corridors of
power. It comes with immense power and the licence to get away with
murder (and in Malaysia this saying is not merely a figure of speech
but can be taken literally, if you know what I mean).
Anyhow, that is another matter. What we want to talk about today is
the letter of 15 June 2006. Reezal Merican said in that letter of 15
June 2006 that he is under instructions of the Malaysian Prime
Minister cum Finance Minister, Abdullah Ahmad Badawi. And the letter
refers to the USD50 billion funding requirement to finance the RM200
billion Rancangan Malaysia Kesembilan (RMK9) or Ninth Malaysian Plan.
The USD50 billion is being procured from 25 prime banks but will be
channelled through a private limited company, Asasatu Technology Sdn
Bhd. The name Ir. Hj Zubir bin Hj Ahmad is mentioned in that letter
as the Managing Director of the company. It appears that the USD50
billion will be channelled through a private limited company and not
directly to the Malaysian government. This would mean, officially,
Malaysia is not borrowing any money. The money is being borrowed by a
private limited company.
(Read page one and page two of the letter here).
Now, what is most interesting about this whole arrangement is,
according to the Registrar of Companies, Asasatu Technology Sdn Bhd,
a company based in Permatang Pauh in Penang, is in the process of
being wound up. That's right, the company that is arranging the USD50
billion for the Malaysian government is a company that is being wound
up. Now that is very interesting indeed. How can a company that is
being wound up be the front for the Malaysian government in
negotiating a very important matter like funding the country's RMK9?
The last filed accounts for Asasatu Technology Sdn Bhd is 31 December
2000. There are no accounts filed since then. In 2000, the company's
fixed assets were shown as RM542,248.00 with current assets of
RM1,976,421.00. But it had current liabilities of RM1,071,641.00 and
long-term liabilities of RM321,756.00. The profit for the year was
RM39,512.00 with accumulated profits of RM125,272.00. This is
certainly not the kind of company Malaysia should be using to raise
USD50 billion for the purpose of funding such an important matter
like the RMK9.
We do not know what the latest financial figures are but since the
company is being wound up we can only assume that since 2001 it
cannot have been doing very well. Ir. Hj Zubir bin Hj Ahmad mentioned
in the 15 June 2006 letter is a Director of the company and holds
1,980,000 shares while Rosni binti Rahmat, the other Director, holds
20,000 shares.
What is even more interesting is that the agent who will arrange the
financing is named in that letter as Union Financial Services
Corporation of Sydney, Australia, and the address is listed as PO Box
A2286. So there is no way of confirming whether this company is just
a 'PO Box' company or a legitimate fund manager. Considering that we
are talking about Malaysia's funding requirement for the five years
until 2010, this makes it very dicey indeed. In a way, this USD50
billion is going to be Malaysia's lifeline and the whole matter is
being handled through a PO Box in Australia and a private limited
company in Malaysia in the process of being wound up.
Two weeks earlier to that 15 June 2006 letter, on 30 May 2006,
Asasatu Technology Sdn Bhd had written Abdullah Ahmad Badawi a letter
offering the USD50 billion and mentioning in that letter that their
partner is Union Financial Services Corporation. The letter was
signed by Ir. Hj Zubir bin Hj Ahmad. A person by the name of Roland
Bleyer is also mentioned as the President of Union Financial Services
Corporation. Reezal Merican's 15 June 2006 letter is in response to
this letter of 30 May 2006.
(Read page one and page two of the letter here).
Even earlier to that, on 22 February 2006, a company called Project
Equity Services Group from Singapore had written to the Prime
Minister and the Bank Negara Governor referring to a meeting in Bank
Negara on 25 October 2005. The letter mentions all those present in
the meeting.
(Read page one and page two of the letter here).
What should be noted here is that the 22 February 2006 letter
mentions that the whole arrangement must be done through Ir. Hj Zubir
bin Hj Ahmad, the Managing Director of Asasatu Technology Sdn Bhd. It
also mentions that this is according to the request by Bank Negara.
Therefore, Bank Negara was the one that stipulated Asasatu Technology
Sdn Bhd would be fronting for the Malaysian government.
The USD50 billion will have to be paid back within ten years and
carries an interest rate of between 2.88% to 3.5%. And it would of
course have to be paid back in US Dollars and subject to whatever the
exchange rate at that time would be. This means the USD50 billion is
exposed to currency fluctuations and exchange risk.
Reading the three letters together, it is clear that Bank Negara has
agreed that a private limited company currently in the process of
being wound up is to be used as a front to borrow USD50 billion and
that this company will act as a front for the Malaysian government so
that it will not be seen that Malaysia is borrowing USD50 billion
from overseas.
Secondly, the whole package was brokered by a Singapore outfit, but
so as not to reveal that Singapore is involved, lest fingers start
pointing to the prime Minister's son-in-law, they shall put the whole
thing through an Australian PO Box that will front as the 'partner'
for the Malaysian outfit.
Thirdly, the Malaysian government will not officially borrow the
money and the borrower will instead be a small mama-papa private
limited company called Asasatu Technology Sdn Bhd. This will keep the
Malaysian government 'clean' of any foreign borrowings.
Finally, it is clear that when the Malaysian government announced the
RM200 billion RMK9 in Parliament, they did not have the money to
finance it. However, not wanting it to appear like the country is
borrowing interest-bearing US Dollars, plus is subject to currency
fluctuations, to finance its development plans, they used a small
private limited company as a front which again used an Australian PO
Box company which in turn is backed by Singapore.
In short, through many layers or levels of front companies and PO Box
companies, Singapore is funding Malaysia's development proudly touted
as the Rancangan Malaysia Kesembilan or RMK9.
Further information on Asasatu Technology Sdn Bhd is as follows:
Address: No.1, Jalan Arowana 4, Kawasan Perniagaan Arowana, Permatang
Pauh, P. Pinang
Poscode: 13500
Tel: 604-3973211, 604-3974211
Fax: 604-3975211
This is what the company has to say about itself:
Asasatu Technology Sdn. Bhd. was incorporated on 24th October 1998,
started off as a specialist contractor undertaking activities related
to Design and Construction of Sewerage Treatment Plant. It has since
branched out venturing into mechanical and electrical works for flood
mitigation project as well undertaking civil work projects in the
building and infrastructure sector. Asasatu Technology Sdn Bhd is
presently diligently pursuing projects from both the Private as well
as from the Government.
The track record for completion of works has been overall good and
with a dedicated and competent management team, the company without
doubt is able to handle projects of a larger scale given the
opportunity.
Asasatu Technology Sdn Bhd, being a civil & structural engineering
company, is capable of handling and undertaking the following scope
of work.
COMPANY VISION
"To become a reputable, reliable and financial strong bumiputra
contractor capable of undertaking and providing quality works for a
broad range of civil and structural works."
COMPANY MISSION STATEMENT
To provide quality works and timely completion of projects to our
valued clients through strong, responsive and innovative management
team and through continuous human resources development program to
meet the challenges and opportunities in the business environment
both local and aboard.
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